1 © Copyright 2006, Southern California Edison
Settlement Party BriefingFebruary 15, 2006
Advanced Metering Infrastructure Phase I Summary & Status
www.sce.com/ami
AMI Program 2© Copyright 2006, Southern California Edison
SCE AMI Directional Cost/Benefit (August 2005)
A/C Load Control
PriceResponse
Capital
(Meters, Network,
IT)
Costs Benefits
O&M
MeterReading
Cust Svc
Operations
A/C Load Control
PriceResponse
Capital
(Meters, Network,
IT)
SCE ProposalAMI
Benefits
O&M
MeterReading
Cust Svc
Operations
SCE Aug., 2005 Supplemental Testimony supporting Phase I
A/C Load Control
PriceResponse
Capital
(Meters, Network,
IT)
Costs Benefits
O&M
MeterReading
Cust Svc
Operations
A/C Load Control
PriceResponse
Capital
(Meters, Network,
IT)
SCE ProposalAMI
Benefits
O&M
MeterReading
Cust Svc
Operations
SCE Aug., 2005 Supplemental Testimony supporting Phase I
Address fundamental cost drivers for last business case Telecom network coverage, performance,
reliability and system management Meter failures and life-cycle performance Interoperability & system security End-to-end data management
Re-evaluate Aug 1st added functionality Interface to A/C load control thru PCT Remote service turn on/off
Identify additional uses for system based on tangible customer and business value
Develop new conceptual estimate of overall business case
AMI Program 3© Copyright 2006, Southern California Edison
SCE AIM system seeks to leverage a 2-way communications infrastructure with 5 million intelligent devices on our distribution network for our customers directly and our operations.
Conceptual AIM System
Illustrative Example
AMI Program 4© Copyright 2006, Southern California Edison
AMI Phase I
AMI Program will use a multi-phased approach to development and deployment of a next generation advanced metering infrastructure over a 7 ½ year timeframe.
Business Process
Design &Proof of Concept
Beta Development
& Pilot
Business
DeploymentPre Deployment
Meter Trade & Feasibility Studies
Conceptual Processes & Systems Reqs
Business Process
AIM Requirements,
“Design”& Proof of Concept
Beta Product
Field Pilot
Business Case in Chief
Full
Activities
Meter Trade & Feasibility Studies
Cost/Benefit Analyses
12/2005 6/2007 12/2008 12/2009 5/2013
Business Process
Design &Proof of Concept
Beta Development
& Pilot
Business
Application
Meter Trade & Feasibility Studies
Conceptual Processes & Systems Reqs
Business Process
AIM Requirements,“Design” &
Proof of Concept
Beta Product
Field Pilot
Meter Trade & Feasibility Studies
Cost/Benefit Analyses
Phase II18 Mos.
Phase I18 Mos.
Phase III B42 mos.
Phase III A12 Mos.
Phase II18 Mos.
Phase I18 Mos.
Phase III B42 mos.
Phase III A12 Mos.
Phase II18 Mos.
Phase I18 Mos.
Phase III B42 mos.
Phase III A12 Mos.
Phase II18 Mos.
Phase I18 Mos.
Phase III B42 mos.
Phase III A12 Mos.
Final Business CaseDesign & System Dev
AMI Program 5© Copyright 2006, Southern California Edison
Utility Driven Meter Development Challenges
Achieve the right balance among Marketability, Functionality and Openness
Develop a specification that is supported by multiple meter and communications vendors and is commercially viable in the NA utility market
FunctionalityOpenness
Engage other utilities & vendors in development process to generate interest and feedback
Leverage OpenAMI, Intelligrid, Gridwise, CEC PCT, ANSI & other standards and reference design initiatives
Durable open design that will support a solid positive business case that provides customer value
Marketability
AMI Program 6© Copyright 2006, Southern California Edison
Phase I Program Scope
Business & FunctionalRequirements
Reference Architecture
Trade-off Analysis
Preliminary Business Case & Regulatory Application
Vendor Engagement
Technology Evaluation
Vendor Product Bench Testing
RegulatoryStakeholder Engagement
Technology Advisory Board
Industry Standards
Utility Collaboration
Cost/Benefit Analysis
External Engagement System Design Technology Development
AMI Program 7© Copyright 2006, Southern California Edison
AMI Phase I Summary Schedule
Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07
System Requirements, Architecture & DesignDefine AMI Requirements
AIM Conceptual Architecture Reference Design
Cost/Benefit AnalysisPreliminary Dynamic C/B Model Development
Preliminary Cost/Benefit AnalysisFeasibility and Trade-Off Analysis
Final Business Case
Vendor & Technology AssessmentVendor Communication & Collaboration
Component/Feasibility Technology TrialsRFI Part I - Conceptual Feature Set
Monitor Vendor's Alpha Product Development RFI Part II - Business Requirements
Beta Product Testing at SCEAMI System RFP
Utility & Industry EngagementUtility Outreach
Technology Advisory BoardExternal Communications
Tentative Phase II Regulatory PreparationApplication for Phase II
Motion to schedule Phase II HearingsPre-Hearing Conference
Possible Settlement Discussions
AMI Program 8© Copyright 2006, Southern California Edison
AMI Program Status (through Jan 31 2006)
Accomplishments Launched AMI Program formally on Nov. 7th CPUC Approval (5-0) on Dec.1st Began requirements workshops (75% complete) Screening RFI for AMI Technology released to vendors worldwide
Results back on Dec. 16th exceeded SCE’s expectation in terms of vendor interest and activity on next generation development including alignment with SCE
AMI products should be available in 2006 for bench testing Technology Advisory Board launched, 3rd meeting held Feb.2 Initiated formation of a utility consortium regarding AMI product standards – initial list represents US and
international utilities representing over 75 million meters
Key Milestones Date StatusPhase I Kick-off Nov 2005
CPUC Phase I Approval Dec 2005
AMI Technology Vendor Screen Q1 2006
Business & Functional Requirements Q2 2006
Conceptual System Architecture Q2 2006
AMI Technology Evaluation Q2 2006
Conceptual Feasibility Q3 2006
Phase II Regulatory Application Q4 2006
Beta Product Selection Q1 2007
Preliminary Business Case Q2 2007
Has Been Met Expect to Meet Undetermined At Risk Not Met
AMI Program 9© Copyright 2006, Southern California Edison
AMI System Design
AMI Program 10© Copyright 2006, Southern California Edison
SCE Brainstorming
System Design: Business Use Cases (Scenarios)
---Distribution operator locates outage using AMI data and restores service
Multiple clients use the AMI system to read data from devices at customer site
Meter reading for gas & water utilities
Utility upgrades AMI system to address future requirements
--Customer provides distributed generation
Customer uses pre-payment services
Utility detects tampering or theft at customer site
Utility maintains the AMI system over its entire life-cycle
-Utility procures energy and settles wholesale transactions using data from the AMI system
Distribution operators optimize network based on data collected by the AMI system
Customer reads recent energy usage and cost at site
Utility remotely limits or connects/ disconnects customer
Utility installs, provision and configure the AMI system
AMI system recovers after power outage, communications or equipment failure
Real-time operations curtails (or limits) load for economic dispatch (ES&M)
Distribution operator curtails customer load for grid management
Customer reduces demand in response to pricing event
Multiple clients read demand and energy data automatically from customer premises
Installation & Maintenance
Field Services / System Recovery
Energy Procurement
DeliveryCustomer Interface
Billing & Customer Service
---Distribution operator locates outage using AMI data and restores service
Multiple clients use the AMI system to read data from devices at customer site
Utility upgrades AMI system to address future requirements
--Customer provides distributed generation
Customer uses pre-payment services
Utility detects tampering or theft at customer site
Utility maintains the AMI system over its entire life-cycle
-Utility procures energy and settles wholesale transactions using data from the AMI system
Distribution operators optimize network based on data collected by the AMI system
Customer reads recent energy usage and cost at site
Utility remotely limits or connects/ disconnects customer
Utility installs, provision and configure the AMI system
AMI system recovers after power outage, communications or equipment failure
Real-time operations curtails (or limits) load for economic dispatch (ES&M)
Distribution operator curtails customer load for grid management
Customer reduces demand in response to pricing event
Multiple clients read demand and energy data automatically from customer premises
Installation & Maintenance
Field Services / System Recovery
Energy Procurement
DeliveryCustomer Interface
Billing & Customer Service
AMI Program 11© Copyright 2006, Southern California Edison
AMI System Design Overview
Conduct 40 AMI workshops
Develop 18 use cases
Generate functional requirements
Generate non-functional requirements
Use Case analysis
Prioritize requirements
Develop high-level patterns
Develop Component Architecture
Map requirements to components
Iteratively refine component architecture
Develop catalog of standards and technologies
Develop Logical (4+1) Architecture
Develop high-level integration architecture
Test architecture against use cases
Publish Platform Independent Model
Map technologies and standards to components
Develop subsystem cost thresholds
Determine trade-off criteria
Select standards and technologies for estimation
Prepare cost estimates & benefits
Describe subsystem boundaries and performance limits
Refine to level of detail required to communicate with vendor community
Develop Platform Specific Model
Prepare next cost estimates & benefits
Business Need
Conducted several innovation sessions to identify potential business value
Studied recent utility experience in creating value from AMI systems
Consultant input on value from AMI systems
AMI System scope is the meter and related communications
AMI Program 12© Copyright 2006, Southern California Edison
System Design: Process for Developing Requirements
Affirmed / Appended
Cost Tradeoff Candidates
Action Items
Work Shop Minutes
Non -Functional
Requirements/ Criteria
Prior Cost Tradeoff
Items
OpenAMI Requirements
Requirements Teams Billing and Customer Service Customer Interface Energy Delivery Energy Procurement Field Services / System Recovery Meter Installation and Maintenance
Intelligrid , Open AMI , Use Case , SCE BRainstorming
Narratives merged , Refined
Cost Tradeoff Teams Field Services Demand Response Energy Procurement Call Center Billing IT Job Skill Training Customer Account Management Marketing & Communications Meter Services Procurement
Megalead , Facillitator tune to SCE Terminology ,
approach
Prior Requirements
Work Products
Department to
Requirement & Cost Tradeoff
Coorelation
18 Use Cases
Wo r
ksho
p P
repa
ratio
n
Workshop Execution
Functional Requirements
Workshop Agenda
Cost Tradeoff Workshops
# TBD
Post Workshop Execution
Workshops : 1-2 scenarios in agenda scope depending
on complexity 4 hours per workshop
T&D
Tariffs & Programs
AMI Program 13© Copyright 2006, Southern California Edison
Business Need Functional Requirement Functional Attribute Technical Requirements
Remote Service Turn-
on/turn-off Remote Controllable
Premise Level Switch
•Switch adjustable to service (e.g., 200/100A)•Remotely Programmable•On-board and remotely triggerable•Component hardware housed under the meter cover
•Dimensions•Weight•Performance rating•Temperature rating•Latching speed•Shielding requirements
Feature Benefits
BenefitValues
•Field Services•Call Center•Credit/Payment•Customer
•$$•$$•$$$•Satisfaction
Requirements Determination & Evaluation
Costs
$ Component$ System$ Ongoing O&M
$ Total
Trade-offAnalysis
AMI Program 8 Confidential
• Extend SCE’s data and controls network to 5 million nodes (WAN)
• Leverage sensor technologies for customers and utility distribution (LAN/HAN)
• Expand meter metrics and analytics beyond the revenue cycle to distribution power characteristics and operational information
• Create a durable design to match 15–20 year lifecycle based on interoperability and open standards
• Enable CPUC price response requirements
• Interface with load control technologies like CEC’s PCT
• Integrate programmable turn on/turn-off switch
• Interface with home information, automation & control technology
AMI Meter Design Objectives
Metrology & Intelligence Telecom
Open Design& Standards
Demand Management
Metrology & Intelligence Telecom
Open Design& Standards
Demand Management
Labor savings, Reduced UFE &
Improved Customer Service
AMI Program 14© Copyright 2006, Southern California Edison
AMI Technology Assessment
AMI Program 15© Copyright 2006, Southern California Edison
Technology Assessment/Procurement Plan
Goal:Competitive commercial products available from at least three meter and three communication vendors that meet SCE’s minimum requirements for performance and price by the end of Phase I
Objectives: Proactively engage in a close collaborative
process with selected vendors with the most promising products in development
Rationalize the number of vendors that SCE wants to engage on product development
In recognition of long procurement cycle (3-4 years), provide on-ramp for promising products and off ramp for non-performing products
Ensure level playing field for relevant vendor information such as requirements, architecture and future procurements
Identify Potential Vendors Worldwide
Initial Candidate Vendor Screen
Candidate Vendor Due Diligence
Beta Product Testing
Vendor Development Screen
Beta Product Selection
Business Requirements Gap Analysis
Jan 06
AMI Program 16© Copyright 2006, Southern California Edison
Candidate Vendor Identification
• Metrology• PQ Metrics• Remote Disconnect• MCU / Memory
GE (I-210)Landis+Gyr (Focus, S4e)
*ITRON (Centron / Sentinel)*Elster (Rex / Alpha 3)*Echelon (NES meter)*Sensus (Icon)
• Local Area Network• Wide Area Network Interface• Home Area Network Interface (HAN)
Partial List of Suppliers
Software
Meter Communications
LoadSwitches
Smart T-stat
CarrierHoneywellJohnson ControlsInvensysEtc…
IntermaticLevitonRAM Ind.Baco ControlsSCE’s LS supplierInvensys
“Open”
BayardUSCLEtc…
In-HomeDisplayDevices
In-HomeDisplayDevices
AmronCannonCellNetItronHuntDCSIEchelon
ComvergeTrilliant/NertecSensusSilver SpringsSmartSynchElsterPowerOneData
BPL?CurrentMitsubishiMotorolaOther…..
Technology Market Structure(representative vendor list)
132 Solicitations Sent• 57% North American Firms• 43% International
32 Qualified Responses Received
Identify Potential Vendors Worldwide
Initial Candidate Vendor Screen
Candidate Vendor Due Diligence
Beta Product Testing
Vendor Development Screen
Beta Product Selection
Business Requirements Gap Analysis
Identify Potential Vendors Worldwide
Initial Candidate Vendor Screen
Candidate Vendor Due Diligence
Beta Product Testing
Vendor Development Screen
Beta Product Selection
Business Requirements Gap Analysis
Technology Assessment Focus
AMI Program 17© Copyright 2006, Southern California Edison
SCE AMI Technology Assessment ApproachLevel 1
(Alignment)Level 3
(Lab Testing)
Level 2(Validation)
L1 Key Criteria: - Functional Capabilities - Product Timing - Commercial availability - 3 X 3 Interoperability - 2-way - Reliability & Availability - Security - Serviceability - HAN Capabilities - WAN Options - Target price range - MTTF- Other
L2 Key Criteria: - Design Development - Production Capabilities - Financial Condition - Processes: Business / Development Manufacturing (NPI) - Supply Chain - Small Requirements Gaps - Other
L3 Key Criteria: - Successful Lab Test - Added functionality - Flexibility - Commercial Terms - Other
Level 4
(Field Test)Level 5
(Full Deployment)
ID “Next Gen” development
Due Diligence Reviews
Product Availability & Testing
Q1-’06 Q2-’06
Q4-’06
Phase IIPhase III
AMI Program 18© Copyright 2006, Southern California Edison
Initial RFI Observations – Significant Market Developments
32 Responses received All are working on “Next Generation” technology 17 indicated an integrated HAN in development 12 indicated development of integrated disconnect Most communications in development are 2-way
and RF peer-to-peer networks Most are incorporating remote software upgrade
capability Vast majority of vendors expect to commercial
product by year-end 2006 for test
Cost Coverage AvailabilityReady for prime time
LoadControl
Elster
Itron
AtosCellNet
Comverge
DCSI
$ $ $ $
$ $ $
$ $ $
4 point rating scale6/30/2004 – Internal Use Only (pgk)
AMI RFI Top Contenders Comparison
85%
90%econ
80%
100%
100%
Developed RF transceiveralong with protocol for DLC(CCU4) - ready for integration
Will support a range of Future load control Devices – not yet available
2-way DLC exists (200 Amp disconnect avail).Customer has LED visualFor operation status
The full 2-way capabilityof the network facilitates.Willing to explore development w/ 3rd party.
$ $
$ $
stat
ed
2-way to meter (RF Mesh)
2-way to collector (CCU4)
2-way to meter
Limited 2-way to meter (PLC)
2-way to meter (RF Mesh)
HVAC DLCSet back T-stat
2004 2006 17 Responses received Very little new product development No Home Area Network capabilities Very limited load control interface No integrated disconnects Not remotely programmable / upgradeable Predominately 1-way fixed RF communications Very limited interoperability
California & Ontario are no longer alone in AMI – Texas, New York and others are pursuing it
Several AMI procurements are currently on the street or in evaluation – (e.g., SDG&E, Portland G&E, Nstar, LIPA, TXU)
Market is moving to a more sophisticated AMI product based utility needs and underlying component technology capabilities
AMI Program 19© Copyright 2006, Southern California Edison
External Engagement
AMI Program 20© Copyright 2006, Southern California Edison
External Engagement
Utility Consortium
Organized within the existing international standards body, UCA® International Users Group. UCA® is the parent organization to OpenAMI
OpenAMI charter has a role defined for an utility advisory board to provide feedback related to utility needs and application of reference design work products
Focus of group is on expedited review and adoption of existing standards/reference design work from OpenAMI, and various related group (EEI, IEEE, ANSI, Intelligrid, and Gridwise)
Proposed charter jointly developed by UCA® and SCE (reviewed by Law) Potential charter members represent over 75 million meters worldwide:
• SDG&E - AEP - FPL• PG&E - ConEd - NationalGrid• EdF - TXU - LIPA• DTE - HydroOne - Exelon• Xcel Energy - PacificCorp - BCHydro• Alliant - Hawaiian Electric - Entergy
Technology Advisory Board Objective is to leverage existing reference design and standards efforts for SCE Membership:
• Carnegie Mellon University: Dr. R. Tongia AMI technology & policy & Asia insights• CEC PEIR/Lawrence Berkeley Labs: D. Watson CEC demand response research• OpenAMI: R. Bell AMI reference design effort• Intelligrid/EPRI: J. Hughes Utility systems interoperability & security• Gridwise Architecture Council: S. Widergren DOE smart grid reference architecture• IEC/EDF: R. Schomberg International standards & European insights